Temporary Occupancy Agreement

Temporary Occupancy Agreement – In Short

Not all cases are cut and dried where upon closing of the escrow the property changes hands. There are exceptions to the rule. There are cases where the seller needs to stay in the house for a short period of time after closing of the escrow or needs to carry out repairs to the property even after closing the escrow. There are some times that the buyer wants to move into the house before the escrow closes. In both these cases a temporary occupancy agreement needs to be signed. This is done to cover all liabilities that have a possibility of arising. Incases of the buyers moving in, it covers scenarios of if the escrow falls through and the buyer cannot purchase the property. Sometimes the sellers have not found a home where they can move into and therefore need to stay on even after the escrow has closed.

However, there are several factors one needs to take into consideration. The insurance company generally does not cover buyers who are staying like tenants. Also, there could be problems incase there are problems with the house – the onus on who will take care of the repairs or the damages.

These documents need to be properly reviewed and that too with the help of an attorney. Once this is signed it is legal and binding. The document includes all sorts of terms and conditions including the amount of rental that has to be paid and the amount to be paid as well as other penalties incase the rent is not paid on time.

Temporary_Occupancy_Agreement

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Sample Template Preview

Temporary Occupancy Agreement
For Seller After Closing

Exhibit “ _______”

This Exhibit is part of the Agreement with an offer date of _____________, 200___, for the purchase and sale of real property located at:_________________________________,_________, Georgia  ____________.

Due to the Seller request to remain in the property after closing date. Buyer agrees that a sum of $________ will be held in escrow at time of closing by closing agent or such other agent as Buyer appoints. If Seller does not vacate the property by the above date, a charge of $________per day will be assessed and deducted from the escrowed amount or Seller financing amount.

Seller agrees to pay Buyer at the rate of $____________per day for the privilege of remaining in the Property after the closing if no escrow is held.  Said charges to Seller shall begin on ____________, 20____, and Seller shall pay the sum of $___________to buyer on ____________, 20____.  Any per diem adjustments for overpayment or underpayment shall be accomplished between Buyer and Seller on the date Seller vacates the Property.

Seller agrees to vacate the property on or before _______o’clock _____m. on the ______day of ____________,200__.

In the event Seller has not vacated the property within ________days following the above agreed upon date, all monies remaining in escrow of Seller financing would be forfeited.  Seller agrees to be tenant(s) in sufferance giving Buyer full right to evict.

Seller agrees to maintain the gas, electric and water service in his name and pay the bills for such utilities as they become due.

It is specifically understood that should the Property be destroyed by fire or other casualties during the time that Seller is in possession pursuant to this Agreement, Seller shall bear the risk of loss on Seller’s personal property.

Seller shall be liable for the expense of repairing any damage to the Property caused by Seller after the closing, normal wear and tear excepted.

Seller agrees to pay all costs of any legal action instituted by Buyer to enforce the terms of this Exhibit, including reasonable attorney’s fees.

This Temporary Occupancy Agreement shall survive the closing.

Special Stipulations:

____________________________________        ______________________________________

Seller: ______________________________            Seller:_________________________________

____________________________________

Buyer: ______________________________